Vitol Part of Consortium for South Africa LNG-to-Power Project
(Bloomberg) -- Vitol Group is part of a consortium proposing a gas-to-power project in South Africa, as the country looks to replace aging coal stations.
Saudi Arabia’s ACWA Power Co. could be brought in as a developer specializing in gas turbines for the project, according to a person familiar with the information, who asked not to be identified because the information is not public. ACWA didn’t immediately respond to a request for comment.
Vivo Energy, an African fuel retailer and distributor owned by energy trading company Vitol, is also involved in the project that would import liquefied natural gas for power generation, a spokesperson said in a reply to questions. Reuters first reported the proposed plan valued at $3 billion to include an import facility and at least 1,000 megawatts of capacity.
South Africa is planning to replace retiring coal-fired stations, that generate most of the nation’s electricity, with renewable energy sources and gas. LNG use will largely depend on imports by pipeline from Mozambique since there’s virtually no domestic oil and gas production.
Vivo is one of the biggest fuel retailers in sub-Saharan Africa and in 2024 expanded into South Africa with the acquisition of Petroliam Nasional Bhd.’s stake in Engen Ltd.
“We can confirm that the project has received Strategic Integrated Project status from Infrastructure South Africa,” the Vivo spokesperson said. Such a designation, when recognized by the government, is meant to help expedite processes and minimize delays for large-scale construction.
South Africa’s auction program to build gas projects – 2,000 megawatts of capacity in its first round – has hit multiple delays.
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